Abstract: The construction of urban-rural two-way circulation system is an inevitable choice under the new development pattern, a powerful driving force for the effective allocation of various production factors, and an important channel to expand the rural circulation market and stimulate the potential of rural consumption.This paper uses grey correlation model and information weight method to empirically analyze the construction level of urban and rural circulation system in Xuancheng City, Anhui Province from 2015 to 2020. The study finds that the unbalanced urban and rural production structure, uneven circulation channels, unequal information circulation, imperfect system and mechanism seriously restrict the development of urban and rural circulation system. In order to further promote the construction of digital countryside, the development of digital economy is the whole, and the construction of “digital countryside” and the improvement of governance modernization.